Dr Chanaka Ganepola

Abstract

We examine the liquidity and insurance premia demanded by hedgers and speculators in commodity markets. We find that hedgers and speculators demand a higher premium for illiquid commodities for providing insurance and liquidity, respectively. Decomposing illiquidity into turnover and size components, we find evidence of a size premium associated with the insurance premium such that speculators demand a larger insurance premium for smaller commodities. We also find that the liquidity premium demanded by hedgers for illiquid commodities varies across bullish and bearish markets with hedgers demanding a larger premium from speculators trading in illiquid commodities in bearish markets.

Purpose Using legitimacy and impression management theories, this study examines whether there is evidence of Corporate Social Responsibility (CSR) decoupling by critically analysing the cases of three Financial Times Stock Exchange (FTSE) 350 airline companies (British Airways, WizAir, and Easyjet). The study focusses on three CSR aspects: community, customer, and employee support. Design/methodology/approach Using the case study method, the authors critically analysed the content of the three companies' websites and verified Twitter accounts between March 2020 and August 2020. The authors also reviewed news media sources tied explicitly to COVID-19 and the airline industry. Findings The study finds evidence of CSR decoupling due to inconsistencies between the three airline companies' communication about the companies' commitment to customers' health and safety and their actions. The study also uncovers that the three airline companies have violated employee rights by imposing unjustifiable and excessive redundancies and pay cuts, freezing planned pay rises, forcing unpaid leaves, and in some cases, suspending free meals during the crew shifts and exploiting the financial pressure and lack of jobs resulting from the pandemic by offering employees inferior contracts. Research limitations/implications This paper responds to He and Harris's (2020) call for research to explore the impact of the global pandemic on CSR practices and Crane and Matten's (2020) call for research investigating how specific stakeholders get unvalued during the pandemic. The authors' study argues that the social responsibility of organisations, especially during crises, should not only focus on voluntary and charitable deeds but also on supporting employees, putting employees' well-being at the forefront of employees' operations, and maintaining credibility and sincerity in employees' communication and actions. Practical implications The findings in this paper provide insights and policy implications for managers, stakeholders, and regulators. The paper sheds light on violations of employee rights, indicating that employees in the airline sector are amongst the under-appreciated stakeholders during the pandemic. Such knowledge is essential for practitioners and policymakers who are charting paths forward to address the needs of vulnerable categories of employees. The paper also elucidates the impact of CSR decoupling on an organisation's legitimacy and the significance of maintaining credibility in CSR communications and actions, especially during a crisis. Originality/value Although exploring and analysing CSR practices in organisations has already attracted considerable interest in recent years, there is minimal knowledge about organisations' genuine commitment to CSR during the pandemic, and there is a dearth of relevant studies in the aviation industry during the COVID-19 pandemic. This study addresses this gap by exploring the CSR practices of three airline companies and the companies' genuine commitment to CSR during the pandemic.

This study explores the primary causes of wholesale electricity price fluctuations in the United Kingdom (UK). Using the structural vector autoregression (SVAR) model that identifies both supply-side and demand-side shocks, and monthly data for the period from January 1996 to May 2022, the findings show that the impact of electricity price increases on the real electricity price is dependent on the underlying cause of the price increase. Electricity price movements in the most recent period of global hardships from 2020-2022, including the Covid-19 pandemic and the Russian invasion of Ukraine, are further examined, which were widely discussed to have affected the global energy segment. The findings show that although shocks to natural gas had a part to play in the recent price increase of electricity, some major contributing factors remain unique to the UK. Finally, the findings put into perspective and question the effectiveness of the energy cap considering the large contribution of renewable power generation.